The long, drawn-out death of the Interbank Offered Rate IBOR, which has been felt across the world, continues. But Singapore is pushing ahead with the new rates in a way that could give its derivatives market the edge.
The first Singapore dollar interest rate swaps referencing the Singapore Overnight Rate Average SORA was recently cleared between Standard Chartered and OCBC.
Although derivate transactions rarely make headline news, the move to use SORA is a milestone for the S$3.5 trillion $2.5 trillion Singapore dollar derivatives market.
The rate at which banks lend to each other has been on its last legs since the...